More Alltel acquisition rumblings

xenophon · EVDO Addict Joined: 30 Aug 2005 Posts: 2003

I wonder if the feds would even allow Sprint or Verizon to acquire Alltel. With the stock as high as it is, I don't see anyone offering enough to be attractive to shareholders. If one of these carriers do acquire Alltel, it would instantly make either one the largest carrier, passing Cingular in subscribers.

http://www.businessweek.com/ap/financialnews/D8MAL0000.htm

A Stifel Nicolaus analyst said buyout interest in wireless carrier Alltel Corp. could cause bids to rise as high as $85 per share, following a report that said private equity shops are eyeing the company.

Shares climbed to a new 52-week high of $62.66 before settling back to $61.09, up $2.78 or 4.8 percent.

Private equity buyers are interested in bidding for the company, which has a strong balance sheet and low debt relative to rivals, according to a Friday story in The Wall Street Journal.

The Little Rock-based company has a market capitalization of about $23 billion following the share price surge.

Analyst Christopher C. King in a client note said he believes rival bids for the company could rise as high as $85 per share, with a minimum bid at $68 per share. Alltel poses an attractive acquisition target for private equity, or even rivals Verizon Communications Inc. and Sprint Nextel Corp., wrote King.

Capt.Dan · Posted: Fri Dec 29, 2006 7:00 pm Post subject:

Gee, I may not have to switch when the contract is done. They may do it for me Laughing

Dan